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Note 3 - Loans/Leases Receivable

3 Months Ended

Mar. 31, 2013

NOTE 3 – LOANS/LEASES RECEIVABLE

The composition of the loan/lease portfolio as of March 31, 2013 and December 31, 2012 is presented as follows:

	As of March 31, 2013			As of December 31, 2012

Commercial and industrial loans	$	398,122,240		$	394,244,252
Commercial real estate loans
Owner-occupied commercial real estate		212,301,539			204,911,308
Commercial construction, land development, and other land		46,449,160			44,962,381
Other non owner-occupied commercial real estate		339,882,919			344,105,550
		598,633,618			593,979,239

Direct financing leases *		109,654,314			103,685,656
Residential real estate loans **		115,548,209			115,581,573
Installment and other consumer loans		66,293,903			76,720,514
		1,288,252,284			1,284,211,234
Plus deferred loan/lease origination costs, net of fees		3,543,227			3,176,405
		1,291,795,511			1,287,387,639
Less allowance for estimated losses on loans/leases		(20,769,462	)		(19,925,204	)
	$	1,271,026,049		$	1,267,462,435


* Direct financing leases:
Net minimum lease payments to be received	$	124,469,580		$	117,719,380
Estimated unguaranteed residual values of leased assets		1,060,990			1,095,848
Unearned lease/residual income		(15,876,256	)		(15,129,572	)
		109,654,314			103,685,656
Plus deferred lease origination costs, net of fees		4,198,286			3,907,140
		113,852,600			107,592,796
Less allowance for estimated losses on leases		(2,296,523	)		(1,990,395	)
	$	111,556,077		$	105,602,401

Management performs an evaluation of the estimated unguaranteed residual values of leased assets on an annual basis, at a minimum. The evaluation consists of discussions with reputable and current vendors and management’s expertise and understanding of the current states of particular industries to determine informal valuations of the equipment. As necessary and where available, management will utilize valuations by independent appraisers. The large majority of leases with residual values contain a lease options rider which requires the lessee to pay the residual value directly, finance the payment of the residual value, or extend the lease term to pay the residual value. In these cases, the residual value is protected and the risk of loss is minimal. There were no losses related to residual values for the three months ended March 31, 2013 and 2012.

**Includes residential real estate loans held for sale totaling $2,260,506 and $4,577,233 as of March 31, 2013, and December 31, 2012, respectively.

The aging of the loan/lease portfolio by classes of loans/leases as of March 31, 2013 and December 31, 2012 is presented as follows:

	As of March 31, 2013
Classes of Loans/Leases	Current			30-59 Days Past Due			60-89 Days Past Due			Accruing Past Due 90 Days or More			Nonaccrual Loans/Leases			Total

Commercial and Industrial	$	396,879,932		$	182,414		$	89,771		$	-		$	970,123		$	398,122,240
Commercial Real Estate
Owner-Occupied Commercial Real Estate		210,645,611			1,037,596			-			-			618,332			212,301,539
Commercial Construction, Land Development, and Other Land		43,557,385			-			337,500			-			2,554,275			46,449,160
Other Non Owner-Occupied Commercial Real Estate		326,644,315			1,097,226			1,403,803			-			10,737,575			339,882,919
Direct Financing Leases		107,181,954			1,204,354			57,070			-			1,210,936			109,654,314
Residential Real Estate		113,860,680			751,593			-			-			935,936			115,548,209
Installment and Other Consumer		64,326,002			574,357			379,924			519			1,013,101			66,293,903
	$	1,263,095,879		$	4,847,540		$	2,268,068		$	519		$	18,040,278		$	1,288,252,284

As a percentage of total loan/lease portfolio		98.05	%		0.38	%		0.18	%		0.00	%		1.40	%		100.00	%

	As of December 31, 2012
Classes of Loans/Leases	Current			30-59 Days Past Due			60-89 Days Past Due			Accruing Past Due 90 Days or More			Nonaccrual Loans/Leases			Total

Commercial and Industrial	$	388,825,307		$	3,724,506		$	9,940		$	120,000		$	1,564,499		$	394,244,252
Commercial Real Estate
Owner-Occupied Commercial Real Estate		204,141,070			142,993			-			-			627,245			204,911,308
Commercial Construction, Land Development, and Other Land		42,180,819			-			-			-			2,781,562			44,962,381
Other Non Owner-Occupied Commercial Real Estate		332,644,532			86,986			1,111,856			-			10,262,176			344,105,550
Direct Financing Leases		101,635,084			877,210			174,560			-			998,802			103,685,656
Residential Real Estate		111,993,859			2,254,730			283,466			-			1,049,518			115,581,573
Installment and Other Consumer		75,711,203			301,025			20,112			39,481			648,693			76,720,514
	$	1,257,131,874		$	7,387,450		$	1,599,934		$	159,481		$	17,932,495		$	1,284,211,234

As a percentage of total loan/lease portfolio		97.89	%		0.58	%		0.12	%		0.01	%		1.40	%		100.00	%

Nonperforming loans/leases by classes of loans/leases as of March 31, 2013 and December 31, 2012 is presented as follows:

	As of March 31, 2013
Classes of Loans/Leases	Accruing Past Due 90 Days or More		Nonaccrual Loans/Leases *		Troubled Debt Restructurings - Accruing		Total Nonperforming Loans/Leases		Percentage of Total Nonperforming Loans/Leases

Commercial and Industrial	$	-	$	970,123	$	900,924	$	1,871,047		9.49	%
Commercial Real Estate
Owner-Occupied Commercial Real Estate		-		618,332		47,958		666,290		3.38	%
Commercial Construction, Land Development, and Other Land		-		2,554,275		337,500		2,891,775		14.66	%
Other Non Owner-Occupied Commercial Real Estate		-		10,737,575		284,433		11,022,008		55.89	%
Direct Financing Leases		-		1,210,936		-		1,210,936		6.14	%
Residential Real Estate		-		935,936		-		935,936		4.75	%
Installment and Other Consumer		519		1,013,101		110,982		1,124,602		5.70	%
	$	519	$	18,040,278	$	1,681,797	$	19,722,594		100.00	%

*Nonaccrual loans/leases includes $6,425,305 of troubled debt restructurings, including $170,027 in commercial and industrial loans, $5,782,572 in commercial real estate loans, $228,178 in residential real estate loans, and $244,528 in installment loans.

	As of December 31, 2012
Classes of Loans/Leases	Accruing Past Due 90 Days or More		Nonaccrual Loans/Leases **		Troubled Debt Restructurings - Accruing		Total Nonperforming Loans/Leases		Percentage of Total Nonperforming Loans/Leases

Commercial and Industrial	$	120,000	$	1,564,499	$	184,084	$	1,868,583		7.36	%
Commercial Real Estate
Owner-Occupied Commercial Real Estate		-		627,245		-		627,245		2.47	%
Commercial Construction, Land Development, and Other Land		-		2,781,562		1,016,023		3,797,585		14.96	%
Other Non Owner-Occupied Commercial Real Estate		-		10,262,176		5,820,765		16,082,941		63.34	%
Direct Financing Leases		-		998,802		-		998,802		3.93	%
Residential Real Estate		-		1,049,518		167,739		1,217,257		4.79	%
Installment and Other Consumer		39,481		648,693		110,982		799,156		3.15	%
	$	159,481	$	17,932,495	$	7,299,593	$	25,391,569		100.00	%

**Nonaccrual loans/leases includes $5,658,781 of troubled debt restructurings, including $99,804 in commercial and industrial loans, $5,173,589 in commercial real estate loans, $64,722 in residential real estate loans, and $320,666 in installment loans.

Changes in the allowance for estimated losses on loans/leases by portfolio segment for the three months ended March 31, 2013 and 2012, respectively, are presented as follows:

	Three Months Ended March 31, 2013

	Commercial and Industrial			Commercial Real Estate		Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total

Balance, beginning	$	4,531,545		$	11,069,502	$	1,990,395		$	1,070,328		$	1,263,434		$	19,925,204
Provisions charged to expense		(87,807	)		1,114,294		378,623			8,899			(356,227	)		1,057,782
Loans/leases charged off		(215	)		-		(73,049	)		(112,891	)		(116,612	)		(302,767	)
Recoveries on loans/leases previously charged off		22,741			5,157		554			-			60,791			89,243
Balance, ending	$	4,466,264		$	12,188,953	$	2,296,523		$	966,336		$	851,386		$	20,769,462

	Three Months Ended March 31, 2012

	Commercial and Industrial			Commercial Real Estate		Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total

Balance, beginning	$	4,878,006		$	10,596,958	$	1,339,496		$	704,946		$	1,269,856		$	18,789,262
Provisions charged to expense		(90,900	)		257,864		315,446			262,968			35,068			780,446
Loans/leases charged off		(376,408	)		-		(315,721	)		(4,757	)		(127,866	)		(824,752	)
Recoveries on loans/leases previously charged off		174,769			620		27,307			-			58,992			261,688
Balance, ending	$	4,585,467		$	10,855,442	$	1,366,528		$	963,157		$	1,236,050		$	19,006,644

The allowance for estimated losses on loans/leases by impairment evaluation and by portfolio segment as of March 31, 2013 and December 31, 2012 is presented as follows:

	As of March 31, 2013
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total

Allowance for loans/leases individually evaluated for impairment	$	498,260		$	3,507,839		$	325,294		$	95,232		$	117,131		$	4,543,756
Allowance for loans/leases collectively evaluated for impairment		3,968,004			8,681,114			1,971,229			871,104			734,255			16,225,706
	$	4,466,264		$	12,188,953		$	2,296,523		$	966,336		$	851,386		$	20,769,462


Loans/leases individually evaluated for impairment	$	614,021		$	14,460,687		$	1,210,936		$	935,936		$	1,124,082		$	18,345,662
Loans/leases collectively evaluated for impairment		397,508,219			584,172,931			108,443,378			114,612,273			65,169,821			1,269,906,622
	$	398,122,240		$	598,633,618		$	109,654,314		$	115,548,209		$	66,293,903		$	1,288,252,284


Allowance as a percentage of loans/leases individually evaluated for impairment		81.15	%		24.26	%		26.86	%		10.18	%		10.42	%		24.77	%
Allowance as a percentage of loans/leases collectively evaluated for impairment		1.00	%		1.49	%		1.82	%		0.76	%		1.13	%		1.28	%
		1.12	%		2.04	%		2.09	%		0.84	%		1.28	%		1.61	%

	As of December 31, 2012
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total

Allowance for loans/leases individually evaluated for impairment	$	280,170		$	4,005,042		$	125,000		$	105,565		$	71,992		$	4,587,769
Allowance for loans/leases collectively evaluated for impairment		4,251,375			7,064,460			1,865,395			964,763			1,191,442			15,337,435
	$	4,531,545		$	11,069,502		$	1,990,395		$	1,070,328		$	1,263,434		$	19,925,204

Loans/leases individually evaluated for impairment	$	1,006,952		$	20,383,846		$	998,802		$	1,217,256		$	687,355		$	24,294,211
Loans/leases collectively evaluated for impairment		393,237,300			573,595,393			102,686,854			114,364,317			76,033,159			1,259,917,023
	$	394,244,252		$	593,979,239		$	103,685,656		$	115,581,573		$	76,720,514		$	1,284,211,234

Allowance as a percentage of loans/leases individually evaluated for impairment		27.82	%		19.65	%		12.51	%		8.67	%		10.47	%		18.88	%
Allowance as a percentage of loans/leases collectively evaluated for impairment		1.08	%		1.23	%		1.82	%		0.84	%		1.57	%		1.22	%
		1.15	%		1.86	%		1.92	%		0.93	%		1.65	%		1.55	%

Information for impaired loans/leases is presented in the tables below. The recorded investment represents customer balances net of any partial charge-offs recognized on the loan/lease. The unpaid principal balance represents the recorded balance outstanding on the loan/lease prior to any partial charge-offs.

Loans/leases, by classes of financing receivable, considered to be impaired as of and for the three months ended March 31, 2013 is presented as follows:

Classes of Loans/Leases	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Interest Income Recognized for Cash Payments Received

Impaired Loans/Leases with No Specific Allowance Recorded:
Commercial and Industrial	$	402,621	$	775,004	$	-	$	767,929	$	1,924	$	1,924
Commercial Real Estate
Owner-Occupied Commercial Real Estate		498,946		498,946		-		507,451		-		-
Commercial Construction, Land Development, and Other Land		-		-		-		-		-		-
Other Non Owner-Occupied Commercial Real Estate		47,958		47,958		-		3,198,617		40,116		40,116
Direct Financing Leases		789,346		789,346		-		831,677		-		-
Residential Real Estate		630,324		630,324		-		810,583		-		-
Installment and Other Consumer		196,615		196,615		-		187,590		2,093		2,093
	$	2,565,810	$	2,938,193	$	-	$	6,303,847	$	44,133	$	44,133

Impaired Loans/Leases with Specific Allowance Recorded:
Commercial and Industrial	$	211,400	$	264,334	$	498,260	$	216,133	$	-	$	-
Commercial Real Estate
Owner-Occupied Commercial Real Estate		-		-		-		-		-		-
Commercial Construction, Land Development, and Other Land		3,929,839		3,929,839		1,154,155		3,933,530		2,703		2,703
Other Non Owner-Occupied Commercial Real Estate		9,983,944		10,236,903		2,353,684		10,046,487		4,501		4,501
Direct Financing Leases		421,590		421,590		325,294		273,192		-		-
Residential Real Estate		305,612		305,612		95,232		308,841		-		-
Installment and Other Consumer		927,467		927,467		117,131		629,810		333		333
	$	15,779,852	$	16,085,745	$	4,543,756	$	15,407,993	$	7,537	$	7,537

Total Impaired Loans/Leases:
Commercial and Industrial	$	614,021	$	1,039,338	$	498,260	$	984,062	$	1,924	$	1,924
Commercial Real Estate
Owner-Occupied Commercial Real Estate		498,946		498,946		-		507,451		-		-
Commercial Construction, Land Development, and Other Land		3,929,839		3,929,839		1,154,155		3,933,530		2,703		2,703
Other Non Owner-Occupied Commercial Real Estate		10,031,902		10,284,861		2,353,684		13,245,104		44,617		44,617
Direct Financing Leases		1,210,936		1,210,936		325,294		1,104,869		-		-
Residential Real Estate		935,936		935,936		95,232		1,119,424		-		-
Installment and Other Consumer		1,124,082		1,124,082		117,131		817,400		2,426		2,426
	$	18,345,662	$	19,023,938	$	4,543,756	$	21,711,840	$	51,670	$	51,670

Impaired loans/leases for which no allowance has been provided have adequate collateral, based on management’s current estimates.

Loans/leases, by classes of financing receivable, considered to be impaired as of and for the three months ended March 31, 2012 is presented as follows:

Classes of Loans/Leases	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Interest Income Recognized for Cash Payments Received

Impaired Loans/Leases with No Specific Allowance Recorded:
Commercial and Industrial	$	358,028	$	1,005,019	$	-	$	396,127	$	-	$	-
Commercial Real Estate
Owner-Occupied Commercial Real Estate		581,747		581,747		-		637,245		-		-
Commercial Construction, Land Development, and Other Land		337,500		337,500		-		112,500		2,168		2,168
Other Non Owner-Occupied Commercial Real Estate		3,735,092		3,735,092		-		4,367,673		894		894
Direct Financing Leases		602,456		602,456		-		922,197		-		-
Residential Real Estate		676,244		676,244		-		815,292		1,673		1,673
Installment and Other Consumer		951,431		951,431		-		950,111		23		23
	$	7,242,498	$	7,889,489	$	-	$	8,201,145	$	4,758	$	4,758

Impaired Loans/Leases with Specific Allowance Recorded:
Commercial and Industrial	$	1,441,155	$	1,791,155	$	371,974	$	1,648,384	$	1,980	$	1,980
Commercial Real Estate
Owner-Occupied Commercial Real Estate		199,427		199,427		30,279		199,427		-		-
Commercial Construction, Land Development, and Other Land		7,941,358		7,941,358		2,166,666		7,891,719		-		-
Other Non Owner-Occupied Commercial Real Estate		11,451,204		11,951,204		1,627,176		11,496,658		67,551		67,551
Direct Financing Leases		118,275		118,275		35,000		91,501		-		-
Residential Real Estate		467,007		467,007		155,102		383,095		-		-
Installment and Other Consumer		19,911		19,911		19,911		20,021		-		-
	$	21,638,337	$	22,488,337	$	4,406,108	$	21,730,805	$	69,531	$	69,531

Total Impaired Loans/Leases:
Commercial and Industrial	$	1,799,183	$	2,796,174	$	371,974	$	2,044,511	$	1,980	$	1,980
Commercial Real Estate
Owner-Occupied Commercial Real Estate		781,174		781,174		30,279		836,672		-		-
Commercial Construction, Land Development, and Other Land		8,278,858		8,278,858		2,166,666		8,004,219		2,168		2,168
Other Non Owner-Occupied Commercial Real Estate		15,186,296		15,686,296		1,627,176		15,864,331		68,445		68,445
Direct Financing Leases		720,731		720,731		35,000		1,013,698		-		-
Residential Real Estate		1,143,251		1,143,251		155,102		1,198,387		1,673		1,673
Installment and Other Consumer		971,342		971,342		19,911		970,132		23		23
	$	28,880,835	$	30,377,826	$	4,406,108	$	29,931,950	$	74,289	$	74,289

Impaired loans/leases for which no allowance has been provided have adequate collateral, based on management’s current estimates.

Loans/leases, by classes of financing receivable, considered to be impaired as of December 31, 2012 is presented as follows:

Classes of Loans/Leases	Recorded Investment		Unpaid Principal Balance		Related Allowance

Impaired Loans/Leases with No Specific Allowance Recorded:
Commercial and Industrial	$	438,355	$	1,203,710	$	-
Commercial Real Estate
Owner-Occupied Commercial Real Estate		503,321		503,321		-
Commercial Construction, Land Development, and Other Land		678,523		678,523		-
Other Non Owner-Occupied Commercial Real Estate		495,702		495,702		-
Direct Financing Leases		777,645		777,645		-
Residential Real Estate		944,211		1,127,242		-
Installment and Other Consumer		534,368		534,368		-
	$	4,372,125	$	5,320,511	$	-

Impaired Loans/Leases with Specific Allowance Recorded:
Commercial and Industrial	$	568,597	$	590,849	$	280,170
Commercial Real Estate
Owner-Occupied Commercial Real Estate		-		-		-
Commercial Construction, Land Development, and Other Land		3,967,583		3,967,583		1,105,795
Other Non Owner-Occupied Commercial Real Estate		14,738,717		14,991,676		2,899,247
Direct Financing Leases		221,157		221,157		125,000
Residential Real Estate		273,045		273,045		105,565
Installment and Other Consumer		152,987		152,987		71,992
	$	19,922,086	$	20,197,297	$	4,587,769

Total Impaired Loans/Leases:
Commercial and Industrial	$	1,006,952	$	1,794,559	$	280,170
Commercial Real Estate
Owner-Occupied Commercial Real Estate		503,321		503,321		-
Commercial Construction, Land Development, and Other Land		4,646,106		4,646,106		1,105,795
Other Non Owner-Occupied Commercial Real Estate		15,234,419		15,487,378		2,899,247
Direct Financing Leases		998,802		998,802		125,000
Residential Real Estate		1,217,256		1,400,287		105,565
Installment and Other Consumer		687,355		687,355		71,992
	$	24,294,211	$	25,517,808	$	4,587,769

Impaired loans/leases for which no allowance has been provided have adequate collateral, based on management’s current estimates.

For commercial and industrial and commercial real estate loans, the Company’s credit quality indicator is internally assigned risk ratings. Each commercial loan is assigned a risk rating upon origination. The risk rating is reviewed every 15 months, at a minimum, and on an as needed basis depending on the specific circumstances of the loan.

For direct financing leases, residential real estate loans, and installment and other consumer loans, the Company’s credit quality indicator is performance determined by delinquency status. Delinquency status is updated daily by the Company’s loan system.

For each class of financing receivable, the following presents the recorded investment by credit quality indicator as of March 31, 2013 and December 31, 2012:

	As of March 31, 2013
			Commercial Real Estate
					Non Owner-Occupied
Internally Assigned Risk Rating	Commercial and Industrial		Owner-Occupied Commercial Real Estate		Commercial Construction, Land Development, and Other Land		Other Commercial Real Estate		Total

Pass (Ratings 1 through 5)	$	374,705,482	$	203,077,969	$	37,563,441	$	303,600,297	$	918,947,189
Special Mention (Rating 6)		10,752,887		4,276,925		3,536,555		9,043,854		27,610,221
Substandard (Rating 7)		12,663,871		4,946,645		5,349,164		27,238,768		50,198,448
Doubtful (Rating 8)		-		-		-		-		-
	$	398,122,240	$	212,301,539	$	46,449,160	$	339,882,919	$	996,755,858

	As of March 31, 2013
Delinquency Status *	Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total

Performing	$	108,443,378	$	114,612,273	$	65,169,301	$	288,224,952
Nonperforming		1,210,936		935,936		1,124,602		3,271,474
	$	109,654,314	$	115,548,209	$	66,293,903	$	291,496,426

	As of December 31, 2012
			Commercial Real Estate
					Non Owner-Occupied
Internally Assigned Risk Rating	Commercial and Industrial		Owner-Occupied Commercial Real Estate		Commercial Construction, Land Development, and Other Land		Other Commercial Real Estate		Total

Pass (Ratings 1 through 5)	$	371,856,380	$	195,567,523	$	38,125,793	$	312,370,393	$	917,920,089
Special Mention (Rating 6)		8,008,866		5,488,602		1,238,152		7,319,902		22,055,522
Substandard (Rating 7)		14,379,006		3,855,183		5,598,436		24,415,255		48,247,880
Doubtful (Rating 8)		-		-		-		-		-
	$	394,244,252	$	204,911,308	$	44,962,381	$	344,105,550	$	988,223,491

	As of December 31, 2012
Delinquency Status *	Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total

Performing	$	102,686,854	$	114,364,316	$	75,921,358	$	292,972,528
Nonperforming		998,802		1,217,257		799,156		3,015,215
	$	103,685,656	$	115,581,573	$	76,720,514	$	295,987,743

*Performing = loans/leases accruing and less than 90 days past due. Nonperforming = loans/leases on nonaccrual, accruing loans/leases that are greater than or equal to 90 days past due, and accruing troubled debt restructurings.

As of March 31, 2013 and December 31, 2012, troubled debt restructurings totaled $8,107,102 and $12,958,374, respectively.

For each class of financing receivable, the following presents the number and recorded investment of troubled debt restructurings, by type of concession, that were restructured during the three months ended March 31, 2013 and 2012. The difference between the pre-modification recorded investment and the post-modification recorded investment would be any partial charge-offs at the time of the restructuring.

	For the three months ended March 31, 2013								For the three months ended March 31, 2012
Classes of Loans/Leases	Number of Loans / Leases		Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Specific Allowance		Number of Loans / Leases		Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Specific Allowance

CONCESSION - Significant payment delay
Owner-Occupied Commercial Real Estate		1	$	47,958	$	47,958	$	-		-	$	-	$	-	$	-
Commercial Constructuion, Land Development, and Other Land		-		-		-		-		2	$	200,000	$	200,000	$	144,000
		1	$	47,958	$	47,958	$	-		2	$	200,000	$	200,000	$	144,000

CONCESSION - Extension of maturity
Commercial and Industrial		3	$	809,494	$	809,494	$	188,700		-	$	-	$	-	$	-
		3	$	809,494	$	809,494	$	188,700		-	$	-	$	-	$	-

CONCESSION - Interest rate adjusted below market
Commercial Constructuion, Land Development, and Other Land		-	$	-	$	-	$	-		1	$	337,500	$	337,500	$	-
Residential Real Estate		-		-		-		-		1		167,739		167,739		-
Installment and Other Consumer		-		-		-		-		1		16,043		16,043		-
		-	$	-	$	-	$	-		3	$	521,282	$	521,282	$	-

TOTAL		4	$	857,452	$	857,452	$	188,700		5	$	721,282	$	721,282	$	144,000

Of the troubled debt restructurings reported above, two with post-modification recorded investments totaling $86,426 were on nonaccrual as of March 31, 2013, and two with post-modification recorded investments totaling $200,000 were on nonaccrual as of March 31, 2012.

For the three months ended March 31, 2013 and 2012, none of the Company’s troubled debt restructurings had redefaulted within 12 months subsequent to restructure where default is defined as delinquency of 90 days or more and/or placement on nonaccrual status.